Cash Certificate Issue Price Estimator

Calculate Present Value of a Cash Certificate

Input Fields

Future Value of Certificate

P

$

Enter the amount you will receive at maturity

Annual Interest Rate

r

%

Enter the annual interest rate

Number of Years

n

Enter the number of years until maturity

CalculateReset

Calculate automaticallyIf enabled, the result will update automatically when you change any value.

Your Results

Issue Price (Present Value)

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Cash Certificate Present Value Formula

$$A = \frac{P}{(1 + r)^n}$$

Where:

• A – issue price or present value of the certificate
• P – maturity value (amount to be received in the future)
• r – annual interest rate (as a decimal)
• n – number of years until maturity

This formula discounts the future value of the certificate back to its current worth.

This calculator is useful for determining how much needs to be deposited today to receive a fixed amount at a later date, given a fixed annual interest rate. It’s particularly valuable in banking, investment planning, and accounting for financial instruments like certificates of deposit or treasury bills. You can also use it to compare investment options with different maturity values and durations.